Max Baucus: “I applaud this effort, and I want to speak for a few moments on the subject and how we might proceed from here. Last…”

“I applaud this effort, and I want to speak for a few moments on the subject and how we might proceed from here. Last week, a number of State attorneys general reached an agreement with several American tobacco companies. The agreement will compensate the States for their Medicaid spending on people who suffer from smoking-related illnesses, like lung cancer and emphysema, with $368 billion in payments over the next 30 years. It is also supposed to include measures to protect the public health and provide tobacco companies with protections against future losses. Congress must soon be asked to pass a law implementing this agreement. Because the agreement is very large and very ambitious, we will need a lot of time and study and consultation before we can reach a final judgment. But let me start with a basic principle. I think we all would agree that a fair negotiated agreement is much better than litigation. But the key word is 'fair.' The agreement must be fair to States as they pay Medicaid expenses, fair to the Federal Government as it pays for Medicaid and Medicare, fair to kids, fair to the public, and fair to the taxpayers.”